corporate gaurantee

Querist : Anonymous (Querist) 11 April 2010 This query is : Resolved
One pvt ltd company has issued corporate gaurantee to bank for the loan of another company by board resolution.The bank has not registered the gaurantee with the ROC and has not taken any asset liability details, no clearance from the secured creditors of the gaurantor company.The gaurantor company does not have this clause in its MOA.Now can the bank enforce recovery of dues on the basis of the corporate gaurantee if the principal borrower has failed to repay?

Follow Query

Report Abuse

Kumar Thadhani (Expert) 14 April 2010
Since there is no clause in the Memorandum of Association in the Guarantor Company and further no board resolution has issued guarantee to bank since it is not registered no recovery of dues could be made against the principal borrower.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries